A Merkle Tree Proof of Reserves uses cryptographic hashing to represent a platform’s customer liability balances within a single Merkle Root. This allows customers to verify that their balances were included without making individual account information publicly available.
A complete customer liability report is extracted from the exchange or platform. Each balance is individually hashed, and the resulting hashes are combined through successive layers to create a single Merkle Root. The tree, customer verification tools and Merkle Root can then be published alongside the relevant attestation report.
Yes. Customers can use the verification portal to confirm that their balance was included in the Merkle Tree. The verification process does not provide access to any other customer’s information.
Changing any balance or record after the tree has been generated will produce a different Merkle Root. This makes it possible to identify when the underlying dataset no longer matches the version linked to the attestation report.
No. A Merkle Tree provides a privacy-preserving and verifiable representation of customer liabilities. A complete Proof of Reserves engagement also includes procedures relating to the platform’s reserve assets, such as verifying asset balances and ownership or control, before comparing reserves with customer liabilities.
Results can be delivered through a customer verification portal, embedded widgets or an API. Attestation reports, verification tools and summary information can be incorporated into the platform’s website and customized to match its branding.
FAQs
Frequently Asked Questions
FAQs
Frequently Asked Questions
A Merkle Tree Proof of Reserves uses cryptographic hashing to represent a platform’s customer liability balances within a single Merkle Root. This allows customers to verify that their balances were included without making individual account information publicly available.
A complete customer liability report is extracted from the exchange or platform. Each balance is individually hashed, and the resulting hashes are combined through successive layers to create a single Merkle Root. The tree, customer verification tools and Merkle Root can then be published alongside the relevant attestation report.
Yes. Customers can use the verification portal to confirm that their balance was included in the Merkle Tree. The verification process does not provide access to any other customer’s information.
Changing any balance or record after the tree has been generated will produce a different Merkle Root. This makes it possible to identify when the underlying dataset no longer matches the version linked to the attestation report.
No. A Merkle Tree provides a privacy-preserving and verifiable representation of customer liabilities. A complete Proof of Reserves engagement also includes procedures relating to the platform’s reserve assets, such as verifying asset balances and ownership or control, before comparing reserves with customer liabilities.
Results can be delivered through a customer verification portal, embedded widgets or an API. Attestation reports, verification tools and summary information can be incorporated into the platform’s website and customized to match its branding.